Today, blockchain interoperability startup DataChain said it received funding from Japan’s largest bank MUFG. The two firms have been working together since last year on blockchain interoperability for MUFG’s Progmat Coin, a multi-bank stablecoin issuance platform. Earlier this month, the companies said they were targeting public blockchain stablecoins, with the timeline confirmed today as April 2024.

The amount of the investment was not disclosed, but the Nikkei reported that it was likely less than 100 million yen ($700,000), representing just 1% of the company.

There are several aspects to joint initiatives. On the one hand, there is the launch of a stablecoin solution on public blockchains.

However, today’s announcement focused more on tokenized securities. Progmat’s platform has already been used to issue various digital securities, in particular for real estate. But around the world there is a trend for multiple security token platforms to exist, even if Progmat is the dominant one in Japan right now. MUFG wants to use Progmat Coins to settle security transactions and enable cross-chain transactions involving multiple blockchain platforms. The other big one in Japan is BOOSTRY by Nomura.

MUFG’s Progmat is in the process of being incorporated, with external investment from stock trader JPX, Mizuho, ​​SMBC, SBI, Sumitomo Mitsui Trust and NTT Data.

The big bank has previously made investments in blockchain, including committing $22.5 million in a Japanese joint venture with web3 and metaverse gaming startup Animoca Brands last summer.